BlackBerry Stops Production; Almost On The Business Cliff
BlackBerry, the Canadian company who introduced us the smartphone had stopped its race without reaching the finishing line. The race took the company to run for about 20 years. The span of Blackberry was not too surprising, but brought sadness about its fate to doom. On Wednesday, the CEO confirmed that the company will no longer produce the iconic handheld device.
A revelation from John Chen, the Blackberry CEO, said that instead of manufacturing smartphones, the company will just prioritize software development, including apps and security to augment and compete with the other leading smartphones' apps. "We are reaching to an inflection point with our strategy, our financial foundation is strong, and our pivot to software is taking hold." said Chen.
BlackBerry's revelation was made during its second-quarter earnings report, in which its revenue of $352 million missed Wall Street forecasts compiled by S&P Global Market Intelligence. Non-GAAP earnings per share were even for the quarter, beating analyst estimates of a loss of 5 cents a share.
Second-quarter sales of the device sank to 400,000. With the emergence of the competitors, the latest quarter was solely dominated by which Apple sold 40.4 million iPhones. The rise of iPhone, Google's Android platform and its dominion changed the status of the iconic handheld iconic device changed as BlackBerry fell out of favor, since its global share plunged to less than 1%. Such a big switch that no one ever thought that from the pedestal there it falls to the ground barefooted.
"BlackBerry failed to anticipate elemental changes in the market," says Charles King, principal analyst of Pund-IT. The company's descent took so long, he says, "There is an element of putting the poor thing out of its misery."
This sudden change was not anticipated, thus led the big company to decide to stop its production for it is now almost in the business cliff.